What is the Process of Withdrawal From PPF Account

A person can close a PPF account only upon maturity i.e. after completion of 15 years. After completion of 15 years, the PPF account holder can withdraw entire balance of his PPF Account including accrued interest portion. After withdrawal of entire balance, the PPF account is closed.

Can the account holder make Premature Withdrawal from his PPF Account?

Even though the PPF account has a maturity period of 15 years but still partial withdrawal before completing 15 years is allowed in it.

The person is also allowed to make partial withdrawal from his account prematurely but only after completing 6 years from the opening of PPF Account. These withdrawals can be made only once in a financial year.

How much amount can be withdrawn prematurely?

The maximum amount that can be withdrawn is capped at 50% of the total balance at the end of the 4th year immediately preceding the year of withdrawal or the year immediately preceding the year of withdrawal, whichever is lower.

Only one withdrawal can be made each financial year.

Step by Step Process of PPF Withdrawal

1. For withdrawing funds partially or completely from your PPF account, you need to submit an application for withdrawal in Form C with the bank branch or post office where your PPF account lies.
2. Form C is an application for withdrawals under the public provident fund scheme, 1968.
3. You can get Form C from your bank branch or post office branch.
4. There are 3 sections in the form which are bank details section, declaration section and office use section. You are required to fill up all the details required in these 3 sections and sign the form at desired space provided in the form.
5. Submit the same along with a copy of your PPF passbook.

Important Points regarding Withdrawal of Funds from PPF Account

• Partial withdrawals are also allowed even if the PPF account is extended beyond 15 years
• Partial withdrawals from PPF are tax free
• If the person does not close the PPF account on its maturity, he can do so. In such a scenario, the balance in the PPF account continues to earn interest till it is closed
• If amount is being withdrawn from minor's PPF Account, then the guardian has to make a declaration that the money is required and will be used for the minor.

PPF Withdrawal in case of Death of PPF Account Holder

Case (1): In Presence of Nomination in PPF Account: All the nominees of the PPf account have submit an application along with Form G (which requires details of nominees like names, account numbers, bank names, etc.). They also need to attach the death certificate of the account holder and a copy of PPF passbook.

Case (2): In Absence of Nomination in PPF Account & Claim Amount is Below Rs 1 Lakh: All the legal heirs of the PPF account have submit an application along with Form G (which requires details of nominees like names, account numbers, bank names, etc.). They also need to attach the death certificate of the account holder and a copy of PPF passbook. Additionally, they need to attach following annexure:

1. Annexure I to Form G (Letter of Indemnity) on stamped paper
2. Annexure II to Form G (Affidavit) on stamped paper
3. Annexure III to Form G (Letter of Disclaimer on Affidavit) on stamped paper

Case (3): In Absence of Nomination in PPF Account & Claim Amount is Rs 1 Lakh or Above:

All the legal heirs of the PPF account have submit an application along with Form G (which requires details of nominees like names, account numbers, bank names, etc.). They also need to attach the death certificate of the account holder, Succession Certificate, Letter of Administration/ attested copy of the will and a copy of PPF passbook.

If there are more than 1 nominee in the PPF account and one of the nominees is deceased then the surviving nominee(s) will also have to provide proof of death of the deceased nominee.